Single-family permit activity in January was up 15 percent versus the same period one year ago when severe winter weather dampened the construction market. Plan review and permit fee changes in a number of major local cities also negatively affected activity in January 2002.

Kansas City has benefited from unseasonably mild weather for the winter building season and low interest rates continue to drive the housing market both locally and nationwide. Nevertheless, housing experts will be keeping a close on new home inventory heading into the spring, according to HBA Executive Vice President Tim Underwood.

"Low interest rates have been the key economic factor in driving the housing market," Underwood said. "At some point, higher job growth and other positive economic forces will be needed to stimulate housing sales. Builders will be keeping a close on eye on new home sales to see if the market can absorb the recent buildup in inventory."

Kansas City, Mo., began the new year where it finished last year, leading the metropolitan area in single-family permits issued with 118. Olathe ranked second with 78 permits, followed by Overland Park with 64 permits.

Rounding out the top-permitting cities for January were Lee's Summit, 53; Shawnee, 43; Grain Valley, 27; Raymore, 27; Gardner, 25; Independence, 23; and Liberty, 16.

The Home Builders Association of Greater Kansas City (HBA) is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes more than $2.5 billion to the Kansas City economy and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.